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2016 Extended Care Market Report

2016 Extended Care Market Report

Market-At-A-Glance
Skilled nursing facilities, the largest single extended care market segment, are increasingly shifting toward short-term, higher-acuity care. In a 2016 HIDA survey, 82% of administrators surveyed reported acuity increases. Occupancy remains near 86%, and the numbers of beds and facilities are relatively flat. Growth rates vary by segment. Assisted living facilities are projected to grow 5% annually through 2019. Continuing care retirement communities are experiencing 3.7% annual growth, and hospice patient volume increased 7% from 2013 to 2104. Home care is a growth area, although the number of home health agencies remains at about 12,400; 80% of these are for-profit providers.

Key Topics
Increased cooperation between extended care facilities and hospitals, as well as with other post-acute providers, is a key trend. Providers are working more closely together to reduce hospital readmissions. At the same time, they are also dealing with an aging population demanding flexible home healthcare options. Staffing is a challenge in all extended care settings. Nursing facility administrators are reporting turnover of up to 50%. Extended care must compete for registered nurses, yet annual salaries in these settings can be $30,000 less than those in hospitals.

Healthcare Policy
Providers are slated for modest payment increases in 2017. Medicare reimbursements will increase an average of 2.1% for skilled nursing facilities, and 2% for hospices. However, home health agencies will receive an average payment cut of -1.8%. Agencies in selected states will begin a new value-based payment model that could result in quality-based bonuses.

GHX Sales Data
Distributor sales of medical products in extended care accounted for 20.7% of the total $42.3 billion in sales through distribution in 2015. The Global Healthcare Exchange Market Intelligence program also reports on top long-term care products by dollars sold, types of long-term care segments by dollars, home health submarkets by dollars, and top home health product categories by dollars.


Overview: Extended Care Settings Changing To Meet Demand Shifts
Overview: Home Care Settings Gain Importance
Acuity Continues To Increase In Skilled Nursing Facilities
Aging Population Drives Extended Care Options, Healthcare Spending
Employee Turnover Is Major Challenge For Extended Care Providers
Reimbursement Uncertainty Adds To Skilled Nursing Facility Concerns
Fee-For-Service Being Replaced By New Payment Models
Readmission Penalties Encourage Hospitals, SNFs To Collaborate
Mergers, Acquisitions Increase; Deal Values Decline
Short Post-Acute Stays Outnumber Long-Term Stays
Number Of Inpatient Rehabilitation Facilities Increases Slightly
Assisted Living Segment Is Forecast To Double By 2030
Continuing Care Retirement Communities Continue Modest Growth
Medicare Spending On Home Care Services Grew To $18 Billion In 2014
Home Care: More Accessible, Less Costly
Home Health Agencies Experience 1.8% Medicare Reimbursement Decrease
Home Health Agencies To Receive Bonus Payments For Quality Performance
Pain Management At Home: A Growing Device Market
Technology Drives Home Medical Equipment Sales
Nationwide Roll-Out Of Competitive Bidding For DMEPOS Underway
New Legislation Provides Competitive Bidding Guidelines
CMS Announces Round Two Recompete Single Payment Amounts, Contract Offers
Long-Term Acute Care Experiences Targeted Decline
Hospice Industry Continues Growth
Hospice Facilities To Receive 2% Medicare Reimbursement Increase In FY 2017
Extended Care’s Share Of Distributor Sales Remains Steady
GHX Lists Top Long-Term Care Products Sold Through Distribution
GHX Reports Long-Term Care Sales By Segment
Home Health Sales By GHX Submarket Category
GHX Reports Top Home Healthcare Product Category Sales Through Distribution

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